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Automatic Stabilizers Built into Our System of Fiscal Policy

Question 42

Multiple Choice

Automatic stabilizers built into our system of fiscal policy


A) make the marginal propensity to consume smaller than it otherwise would be.
B) make the investment multiplier larger than it otherwise would be.
C) make the IS curve steeper than it otherwise would be.
D) make monetary policy less effective in moving GDP around in the short run than it otherwise would be.
E) all of the above.

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